Coinbase Ireland hit with €3.25M fine over safeguarding failures

Regulators discovered that calculation errors and poor internal controls led to daily funding shortfalls for at least 18 months. These gaps peaked at €5.2 million in 2024, as the exchange struggled with system design flaws and the commingling of customer assets with other Coinbase business entities. The Central Bank of Ireland noted that the firm lacked sufficient local expertise to manage the safeguarding functions it had outsourced to its American counterparts.

Coinbase attributed the lapses to operational complexities during periods of banking sector disruption, specifically citing the 2023 US banking crisis and post-Brexit migration challenges. The company maintains that no customers suffered financial losses or lost access to their capital. Having admitted to the contraventions, the exchange claims the technical issues are now fully resolved following a series of control overhauls implemented throughout 2024 and 2025. This sanction follows a separate €21.5 million settlement in November 2025 regarding anti-money laundering monitoring failures, marking another significant regulatory hurdle for the firm’s European operations as it shifts its primary crypto hub to Luxembourg.